Sherwin-Williams just got itself some more international exposure. The company announced that it just acquired Consorcio Comex, S.A. de C.V., a Mexico-based paint and coatings company. The ink is dry, but everything is still subject to regulatory approval. This is a $2.34 billion all-cash acquisition, so it’s obvious that Sherwin-Williams is very serious about breaking further into the Latin American market. This is a continuing trend that we’re keeping our eyes on. Latin America represents a great opportunity for both manufacturers and builders as more and more growth explodes out of that region.
Comex has been around since 1952 and has corporate offices in Latin America and Canada in addition to its U.S. presence. In terms of size, last year saw over $1.4 billion in sales, most of it involving architectural and industrial coatings through local company-operated stores in those three regions.
Comex operates 16 manufacturing sites, 8 in Mexico, 5 in the U.S. and 3 in Canada. It has over 7,200 employees. This seems like a very good acquisition for Sherwin-Williams who is in direct competition with such brands as Behr and Valspar, who enjoy heavy exposure through thousands of local home improvement warehouses and other retailers. The deal instantly inserts Sherwin-Williams into markets where it had been weaker and builds up their retail and customer base well beyond what they had achieved alone.
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